BILL NUMBER: AB 1118	CHAPTERED  07/06/99

	CHAPTER   72
	FILED WITH SECRETARY OF STATE   JULY 6, 1999
	APPROVED BY GOVERNOR   JULY 6, 1999
	PASSED THE ASSEMBLY   JUNE 16, 1999
	PASSED THE SENATE   JUNE 15, 1999
	AMENDED IN SENATE   JUNE 15, 1999

INTRODUCED BY   Assembly Members Reyes, Ducheny, Machado, Jackson,
Correa, Florez, Havice, Zettel, and Rod Pacheco and Senators Brulte,
McPherson, Rainey, Schiff, Baca, Haynes, Johannessen, Johnson,
Kelley, Knight, Leslie, Lewis, Monteith, Morrow, Mountjoy, Ortiz, and
Poochigian

                        FEBRUARY 25, 1999

   An act to amend Sections 66025, 69615.6, 69618.1, 69618.2,
69618.3, and 76300 of the Education Code, relating to postsecondary
education, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1118, Reyes.   Postsecondary education:  systemwide fees:
Graduate Assumption Program of Loans for Education.
   (1) Existing law provides for a public postsecondary educational
system in this state, which consists of the University of California,
the California State University, and the California Community
Colleges.
   Existing law requires systemwide fees charged to resident
undergraduate students at the University of California and the
California State University to be reduced for the 1998-99 fiscal year
by 5% below the level charged during the 1997-98 fiscal year, and,
for the 1999-2000 fiscal year, to be at the same level as for the
1998-99 fiscal year.
   This bill would require systemwide education and registration fees
charged to resident undergraduate students at the University of
California and the California State University for the 1999-2000
fiscal year to be reduced by 5% below the level charged for those
resident students for the 1998-99 fiscal year.
   (2) Existing law establishes the Assumption Program of Loans for
Education, under which an applicant enrolled in a participating
institution of postsecondary education, or who agrees to participate
in a qualifying teacher training program, is eligible to receive a
loan assumption warrant upon completing a specified period of
teaching in a public elementary or secondary school.  Existing law
provides that, for the 1998-99 school year, and each school year
thereafter, the Student Aid Commission is required to issue warrants
for the assumption of up to 4,500 loans under this program.
   This bill would require the commission to issue warrants for the
assumption of up to 5,500 loans each school year, commencing with the
1999-2000 school year.  The bill would require, beginning with the
2000-01 school year, and each school year thereafter, the commission
to issue up to 100 of those warrants for the assumption of student
loans for applicants who agree to teach in school districts serving
rural areas.
   (3) Existing law establishes the Graduate Assumption Program of
Loans for Education, under which an applicant enrolled in a
participating institution of postsecondary education, and who agrees,
upon graduation, to teach full-time at a California college or
university, is eligible to receive a conditional warrant for loan
assumption, to be redeemed pursuant to a prescribed procedure upon
becoming employed as a full-time teacher at a California college or
university.
   The bill would make persons who render the equivalent of full-time
service by teaching part-time at more than one California college or
university eligible to participate in the program.
   (4) Existing law establishes the fee charged per unit per semester
charged to resident undergraduate students at the California
Community Colleges at $13, except that for the 1998-99 and 1999-2000
academic years the fee per unit per semester is $12.
   This bill would reduce this fee to $11 per unit per semester,
effective with the fall term of the 1999-2000 academic year.
   (5) The  bill would declare that it is to take effect immediately
as an urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 66025 of the Education Code is amended to read:

   66025.  (a) Systemwide fees charged to resident undergraduate
students at the University of California and the California State
University shall be reduced for the 1998-99 fiscal year by 5 percent
below the level charged during the 1997-98 fiscal year, and the
systemwide fees charged to those students for the 1999-2000 fiscal
year shall be reduced by 5 percent below the level charged during the
1998-99 fiscal year.  Systemwide education and registration fees
charged to resident graduate students at the University of California
and the California State University for the 1999-2000 fiscal year
shall be reduced by 5 percent below the level charged those resident
students for the 1997-98 fiscal year.  This subdivision does not
apply to resident students pursuing a course of study leading to a
professional degree who are subject to a supplemental fee pursuant to
the policy of the University of California.
   (b) No provision of this section shall apply to the University of
California except to the extent that the Regents of the University of
California, by appropriate resolution, make that provision
applicable.
  SEC. 2.  Section 69615.6 of the Education Code is amended to read:

   69615.6.  (a) Beginning no later than the 1986-87 school year, and
each school year thereafter up to and including the 1997-98 school
year, the commission shall issue warrants for the assumption of up to
500 student loans for program participants eligible under this
article.
   (b) For the 1998-99 school year, the commission shall issue
warrants for the assumption of up to 4,500 student loans for program
participants eligible under this article.
   (c) For the 1999-2000 school year, and each school year
thereafter, the commission shall issue warrants for the assumption of
up to 5,500 student loans for program participants eligible under
this article.
   (d) Commencing with the 2000-01 school year, and each school year
thereafter, up to 100 of the 5,500 warrants issued pursuant to
subdivision (c), shall be issued for the assumption of student loans
for applicants who agree to teach in school districts serving rural
areas.
   (e) The issuance of warrants shall be subject to funding to be
provided in the Budget Act for each fiscal year.
  SEC. 3.  Section 69618.1 of the Education Code is amended to read:

   69618.1.  (a) Program participants shall meet all of the following
eligibility criteria prior to selection in the program and must
continue to meet these criteria, as appropriate, during the payment
periods:
   (1) The participant shall be a United States citizen or eligible
noncitizen.
   (2) The participant shall be a California resident attending an
eligible school or college in the state.
   (3) The participant shall be making satisfactory academic
progress.
   (4) The participant shall have complied with United States
Selective Service requirements.
   (5) The participant shall not owe a refund on any state or federal
educational grant or have delinquent or defaulted student loans.
   (b) Any person enrolled in an institution of postsecondary
education and participating in the loan assumption program set forth
in this article may be eligible to receive a conditional warrant for
loan assumption, to be redeemed pursuant to Section 69618.2 upon
becoming employed as a full-time faculty member at a California
college or university or the equivalent of full-time service as a
faculty member employed part-time at two or more California colleges
or universities.
   (c) (1) The commission shall award warrants to students with
demonstrated academic ability and financial need, as determined by
the commission pursuant to Article 1.5 (commencing with Section
69503).
   (2) The applicant shall have completed a baccalaureate degree
program or be enrolled in an academic program leading to a graduate
level degree.
   (3) The applicant shall be currently enrolled in or admitted to a
program in which he or she will be enrolled in a full-time course of
study each academic term as defined by an eligible institution.  The
applicant shall agree to maintain satisfactory academic progress.
   (4) The applicant shall have been judged by his or her
postsecondary institution to have outstanding ability on the basis of
criteria that may include, but need not be limited to, any of the
following:
   (A) Grade point average.
   (B) Test scores.
   (C) Faculty evaluations.
   (D) Interviews.
   (E) Other recommendations.
   (5) In order to meet the costs of obtaining a graduate degree, the
applicant shall have received, or be approved to receive, a loan
under one or more of the following designated loan programs:
   (A) The Federal Family Education Loan Program (20 U.S.C. Sec. 1071
et seq.).
   (B) Any loan program approved by the commission.
   (6) The applicant shall have agreed to teach on a full-time basis
at one or more accredited California colleges or universities for at
least three consecutive years after obtaining a graduate degree.
   (d) A person participating in the program pursuant to this section
shall not receive more than one warrant.
  SEC. 4.  Section 69618.2 of the Education Code is amended to read:

   69618.2.  The commission shall redeem an applicant's warrant and
commence loan assumption payments as specified in Section 69618.3
upon verification that the applicant has fulfilled all of the
following:
   (a) The applicant has received a graduate degree from an
accredited, participating California institution.
   (b) The applicant has provided the equivalent of full-time
instruction at one or more regionally accredited California colleges
or universities for one academic year or the equivalent.
   (c) The applicant has met the requirements of the warrant and all
other conditions of this article.
  SEC. 5.  Section 69618.3 of the Education Code is amended to read:

   69618.3.  The terms of the loan assumptions granted under this
article shall be as follows, subject to the specific terms of each
warrant:
   (a) After a program participant has completed one academic year,
or the equivalent of teaching, at one or more regionally accredited,
eligible California colleges or universities, the Student Aid
Commission shall assume up to two thousand dollars ($2,000) of the
participant's outstanding liability under one or more of the
designated loan programs.  The initial year of eligible teaching must
begin within 10 years of receiving an initial conditional warrant
from the commission.
   (b) After the program participant has completed two consecutive
academic years, or the equivalent of teaching, at one or more
regionally accredited California colleges or universities, the
commission shall assume up to an additional two thousand dollars
($2,000) of the participant's outstanding liability under one or more
of the designated loan programs, for a total loan assumption of up
to four thousand dollars ($4,000).
   (c) After a program participant has completed three consecutive
academic years, or the equivalent of teaching, at one or more
regionally accredited California colleges or universities, the
commission shall assume up to an additional two thousand dollars
($2,000) of the participant's outstanding liability under one or more
of the designated loan programs, for a total loan assumption of up
to six thousand dollars ($6,000).
  SEC. 6.  Section 76300 of the Education Code is amended to read:
   76300.  (a) The governing board of each community college district
shall charge each student a fee pursuant to this section.
   (b) (1) The fee prescribed by this section shall be  twelve
dollars ($12) per unit per semester, effective with the fall term of
the 1998-99 academic year, and eleven dollars ($11) per unit per
semester effective with the fall term of the 1999-2000 academic year.

   (2) The chancellor shall proportionately adjust the amount of the
fee for term lengths based upon a quarter system and also shall
proportionately adjust the amount of the fee for summer sessions,
intersessions, and other short-term courses.  In making these
adjustments, the chancellor may round the per unit fee and the per
term or per session fee to the nearest dollar.
   (c) For the purposes of computing apportionments to community
college districts pursuant to Section 84750, the chancellor shall
subtract from the total revenue owed to each district, 98 percent of
the revenues received by districts from charging a fee pursuant to
this section.
   (d) The chancellor shall reduce apportionments by up to 10 percent
to any district that does not collect the fees prescribed by this
section.
   (e) The fee requirement does not apply to any of the following:
   (1) Students enrolled in the noncredit courses designated by
Section 84757.
   (2) California State University or University of California
students enrolled in remedial classes provided by a community college
district on a campus of the University of California or a campus of
the California State University, for whom the district claims an
attendance apportionment pursuant to an agreement between the
district and the California State University or the University of
California.
   (3) Students enrolled in credit contract education courses
pursuant to Section 78021, if the entire cost of the course,
including administrative costs, is paid by the public or private
agency, corporation, or association with which the district is
contracting and if these students are not included in the calculation
of the average daily attendance of that district.
   (f) The governing board of a community college district may exempt
special part-time students admitted pursuant to Section 76001 from
the fee requirement.
   (g) The fee requirements of this section shall be waived for any
student who, at the time of enrollment, is a recipient of benefits
under the Aid to Families with Dependent Children program, the
Supplemental Security Income/State Supplementary Program, or a
general assistance program or has demonstrated financial need in
accordance with the methodology set forth in federal law or
regulation for determining the expected family contribution of
students seeking financial aid.  The governing board of a community
college district also shall waive the fee requirements of this
section for any student who demonstrates eligibility according to
income standards established by the board of governors and contained
in Section 58620 of Title 5 of the California Code of Regulations.
   (h) The fee requirements of this section shall be waived for any
student who, at the time of enrollment is a dependent, or surviving
spouse who has not remarried, of any member of the California
National Guard who, in the line of duty and while in the active
service of the state, was killed, died of a disability resulting from
an event that occurred while in the active service of the state, or
is permanently disabled as a result of an event that occurred while
in the active service of the state.  "Active service of the state,"
for the purposes of this subdivision, refers to a member of the
California National Guard activated pursuant to Section 146 of the
Military and Veterans Code.
   (i) (1) It is the intent of the Legislature that sufficient funds
be provided to support the provision of a fee waiver for every
student who demonstrates eligibility pursuant to subdivisions (g) and
(h).
   (2) From funds provided in the annual Budget Act, the board of
governors shall allocate to community college districts, pursuant to
this subdivision, an amount equal to 2 percent of the fees waived
pursuant to subdivisions (g) and (h).  From funds provided in the
annual Budget Act, the board of governors shall allocate to community
college districts, pursuant to this subdivision, an amount equal to
7 percent of the fee waivers provided pursuant to subdivisions (g)
and (h) for determination of financial need and delivery of student
financial aid services, on the basis of the number of students for
whom fees are waived.  Funds allocated to a community college
district for determination of financial need and delivery of student
financial aid services shall supplement, and shall not supplant, the
level of funds allocated for the administration of student financial
aid programs during the 1992-93 fiscal year.
   (j) The board of governors shall adopt regulations implementing
this section.
  SEC. 7.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to make the necessary statutory changes to implement the
Budget Act of 1999 with respect to the funding of higher education as
soon as possible, it is necessary that this act take effect
immediately.
